The S&P/ASX 200 Index (ASX: XJO) is out of form on Wednesday and has dropped deep into the red. In afternoon trade, the benchmark index is down 0.7% to 7,354.5 points.
Four ASX shares that are falling more than most today are listed below. Here's why they are tumbling lower:
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Allkem Ltd (ASX: AKE)
The Allkem share price is down 7% to $10.77. This may have been driven by a broker note out of Ord Minnett this morning. According to the note, the broker has downgraded the lithium miner's shares to an accumulate rating from buy with a $12.50 price target. It made the move on valuation grounds.
Megaport Ltd (ASX: MP1)
The Megaport share price has tumbled 16% to $15.30. This follows the release of the leading elastic interconnection services provider's second quarter update. According to the release, Megaport posted a quarter on quarter monthly recurring revenue (MRR) increase of just $0.6 million to $9.2 million. This led to an 8% increase in second quarter revenue to $26.6 million. Investors appear to have been expecting much stronger growth given the lofty multiples its shares trade on.
Redbubble Ltd (ASX: RBL)
The Redbubble share price has continued its slide and is down a further 8% to $2.14. Investors have been selling down the ecommerce company's shares after brokers responded negatively to its recent trading update. One of those brokers is Morgan Stanley. It downgraded Redbubble's shares to an equal weight rating and cut the price target on them from $6.50 to $2.65.
Temple & Webster Group Ltd (ASX: TPW)
The Temple & Webster share price is down 9% to $8.32. This is despite there being no news out of the online furniture and homewares retailer. However, given disappointing updates from other ecommerce companies recently, investors appear to believe Temple & Webster could be struggling in FY 2022.
